HLAS

Making Tax Digital (MTD) for income tax will be mandated for a large group of self-assessment taxpayers from 6 April 2026, with even more individuals being mandated in 2027 and 2028. If your combined turnover from a property or sole trade business was over £50,000 in the 2024/25 tax year, you will likely be required to comply with the MTD for income tax rules from 6 April 2026. Reports from recent surveys indicate that many landlords are not confident that they understand the requirements of MTD for income tax. Many are concerned or worried about the changes. If you are [...]

In a recent decision, the Supreme Court rejected an appeal by Hotel la Tour Ltd, which argued that it was entitled to reclaim input VAT on professional fees incurred during the sale of shares in the company that owned its luxury hotel in Birmingham. HMRC maintained that the share disposal was a VAT-exempt transaction and that the legislation prevents the recovery of input tax where there is a direct and immediate link between the input costs (in this case, the professional fees) and an exempt supply. Hotel la Tour Ltd (HTL) contended that no such direct and immediate link existed [...]

With the tax/financial year end approaching, now is a good time to check that you’re making the most of the available reliefs and allowances available to you. Please talk to us if you think any of the issues affect you. Savings If you have some spare cash, an obvious tax planning point would be to maximise your ISA allowances for the 2025/26 tax year (currently £20,000 per person). If you are 18 or over but under 40, you can open a Lifetime ISA to save for your first home or retirement. You can put in up to £4,000 each year, [...]

The government has announced that the proposed cap to the 100% rates of Agricultural Property Relief (APR) and Business Property Relief (BPR), which is due to apply from 6 April 2026, will be increased to £2.5 million from the £1 million previously announced. The revised measure means that from 6 April 2026, individuals will be able to pass on £2.5 million of qualifying agricultural and business assets without attracting IHT. This is the second recent significant amendment to the proposed IHT reforms, which were first announced in the 2024 Autumn Budget. The initial policy did not permit any unused allowance on [...]

From 6 April 2026, employees will no longer be able to claim tax relief against their employment income for the costs of working from home. This change is being introduced due to widespread incorrect claims for the relief. The homeworking relief, set at £6 per week (or the actual amount of homeworking costs if higher), will remain available for 2025/26, but only where the employee is contractually required to work from home. This measure will lead to an increase in Income Tax of £62 for basic rate taxpayers and £124 for higher rate taxpayers. From 2026/27 onwards, where an employer [...]

Following a successful pilot that assisted over 25,000 people in staying in or returning to work, WorkWell, a health-and-employment support service, is set for a national rollout across England. The programme aims to help up to 250,000 additional individuals with health conditions, supporting the government’s wider efforts to reduce long-term sickness absence and tackle economic inactivity. For employers, WorkWell provides early intervention, helping staff before health issues result in prolonged absence or lead to someone leaving work entirely. Long-term sickness continues to pose challenges for businesses. Currently, around 2.8 million people are out of work due to long-term health conditions, [...]

Small Business Britain is set to introduce its Small and Mighty Enterprise Programme, a six-week online course designed to support sole traders and micro businesses in identifying and seizing growth opportunities. The programme offers a combination of expert guidance, mentoring, and practical resources, helping participants develop a twelve-month action plan to grow and thrive over the coming year. Delivered entirely online, it provides flexible learning accessible from anywhere in the UK, making it ideal for business owners with busy schedules. Programme highlights include: Live weekly sessions that are recorded and hosted on a private Small Business Britain website, available exclusively [...]

From 21 January 2026, new legislation allows self-employed individuals and personal employees to apply for Enhanced and Enhanced with Barred List(s) DBS checks in their own right for the first time. Until now, self-employed people could only obtain a Basic DBS check. Where an Enhanced check was needed, an employing organisation had to apply on their behalf, which was not always possible when someone was working directly for individuals. What’s changing Under the new rules, self-employed workers and personal employees who are paid for their role will be able to apply for Enhanced DBS checks themselves, provided their role is [...]

UK wage growth slowed to 4.5% between September and November 2025, according to the Office for National Statistics, highlighting a significant deceleration in private sector pay. Wages in private businesses rose by just 3.6%, marking the lowest increase in five years. Public sector pay grew by 7.9%, although the ONS noted this was likely influenced by pay awards being brought forward compared with the previous year. The labour market also showed signs of cooling. The number of people on company payrolls fell by 135,000, with the largest reductions seen in retail and hospitality. Youth unemployment for 16–24-year-olds remained high at [...]

Almost 500 UK employers have been fined a total of £10.2 million for failing to pay the National Minimum Wage (NMW), with £6 million returned to 42,000 workers. The list of named employers includes well-known high-street brands, indicating that businesses of all sizes can have difficulties in applying the minimum wage rules correctly. Implications for employers For businesses, this latest naming round highlights the ongoing scrutiny there is on minimum wage compliance. The NMW and National Living Wage rates increased earlier this year, with a further rise planned from April 2026. As a reminder, the rates are:   2025 rate [...]